CYGX

Captain Crunch

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Thought this might be of interest to shareholders.

CYTOGENIX SHAREHOLDER UPDATE

January, 2006

Valued Shareholders:

We at CytoGenix send our best wishes to you for a healthy and prosperous New Year. This update marks six years that we have been working on the gene down regulation and expression technology that began with single stranded DNA expression vectors and has progressed to cell-free production of synthetic DNA. The level of activity has reached a point that it will be more efficient to provide the details of Company progress via our web site. We will include details of progress in product development, scientific research results including recently published papers, presentations and attendance at scientific meetings, patent filing activity and plans for Company expansion. Here are a few highlights that will preview items you can review in more detail as the web site is updated.



The Company continued efforts to commercialize the synthetic DNA production process and we are currently evaluating several synthetic DNA constructs as potential additions to developmental products in our pipeline.



The prototype of the synDNA? production module designed in conjunction with Alpha Laval Biokinetics was completed and tested on schedule. The tests were positive and provided valuable information about quality control measures and performance monitoring. As the Company prepares to initiate operation and validation of the module, we will also implement the next stage of planning for construction of the synDNA? processing facility.



Test results show that the synDNA? constructs for smallpox, HA (influenza) and hepatitis B were all effective in stimulating immune responses in animal tests (mice were tested for smallpox, HA and rabbits for hepatitis B). The synDNA? constructs were equally or more biologically active than the equivalent fermentation derived plasmids in these pilot studies. Additional tests of DNA vaccines for additional conditions are scheduled.



Negotiations are concluding with a supplier who makes the chemical constituents required for synDNA? production. The Company expects that it can achieve a long term relationship with terms that enable cost effective manufacture.



Using our screening techniques, we have identified additional bacterial gene targets to extend our anti-bacterial program. Over twenty-five oligonucleotide compounds have been investigated for silencing genes in Escherichia coli, Streptococcus pneumoniae, Streptococcus mutans (the principal cause of sepsis, pneumonia and tooth decay, respectively) and methicillin-resistant Staphylococcus aureus. Several lead compounds are now being tested in animals.



With the capacity to increase production of synDNA?, we will conduct enabling studies required by the FDA pursuant to filing an IND application for Simplivir? and resume testing of CytoGenix?s anti-inflammatory product, CY303. We will continue these developments using the new synDNA? constructs rather than conduct the studies with the fermentation derived plasmids which are much more expensive and less effective.



CytoGenix science and technology are both applicable to problems of increasing scope. An agreement has been executed to work with the Fast Trak Biodefense division of General Electric Healthcare to develop grant and contract proposals. The agreement with GE Healthcare is a model for additional partnerships for exploring the use of CYGX technology in bio-defense applications. The Company will accelerate its efforts to secure contracts with the Departments of Health and Human Services and Homeland Security to develop anti-virals and anti-bacterials. This will include expansion of our development of DNA vaccines to test constructs for avian influenza (H5N1) in both rodents and primates. The immunogenic constructs for smallpox, influenza and hepatitis B will be further tested with challenges to immunized animals. Acquisition of necessary data to comply with regulatory requirements to permit clinical evaluation of Simplivir? will proceed. Advances in the synDNA? production facility will enable increases in cell-free DNA for our own products and for our clients.



In summary, in the coming year, we will intensify our product development efforts with our own synDNA?, increase our efforts to secure government contracts for bio-defense applications, proceed with development of synDNA? production and maintain scientific research necessary to move the company forward. It promises to be an exciting time.

Again, best wishes for the year to come and thank you for your continued support.

Very truly yours,

Malcolm Skolnick
 

Captain Crunch

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Saw this on IHUB, and thought it was a good explanation of the recent price movements of CYGX. This guy seems to know his technical analysis pretty well, so I thought some of you might find it interesting or reassuring.

Here is his post addressed to another poster. (more please)

You asked when I consider a pricedrop being meaningfull. The answer is already included in my statement: 'With no volume to support, these down movements are just "noise", meaningless.' Meaning that those down movements become meaningfull once they are supported by volume.

And, I quite understand your hypothetical problem of lossing $100,000 (25%) on paper in one month, but you als have to consider the 145% gain within the two preceding monts (from 0.46 on 7/11 to 1.13 on 5/01) being $268,000 expressed in your hypothetical number of shares. Still leaving you with a decent margin of hypothetical $168,000, one would have to admit.

And for clarification; why is the down volume so low? We can clearly see from volume history that a lot of money have been flowing into CYGX when the pps was rising. When people realy were concerned they would use a stop loss to protect their investment, but apparently - and again I am referring to the volume - they do not sell in equal numbers when it goes down. It seems to me, they rather want to keept their shares, even when it goes down (on low volume).

Your 400K virtual shares keep puzling me. Imagine yourself buying 400,000 real shares tomorrow. Imagine you buy them at the asked price. What would happen? To me it seems likely the price will rise. I do hold it for possible, that you could bring the price back to 1.20 with only 400,000 shares. Most likely all those lurking to get in will join your hypothetical buys and we will see a million of more shares traded with an upgoing price.

If the market actualy believed for one or another obscure reason, that CYGX could not realy deliver it's attributed potential,we would see some real gap down's with millions of volume.

more please, I fully understand your concern and position, and I would also rather have seen a consolidation in the .90-ties, but I do not realy worry. These price drops bring order to the chart and technical indicators and take away overbought signals and clear the way for new upward movement.

Let us face it - I have not calculated the real numbers - the amount of money flowing into CYGX has been much larger than the amount now being sold. I guess we have a 65% to 35% situation at the best. This means, that we have a drop in price, but that this actual price level does not realy expresses the expected and perceived future value.

Any significant news can and will take us to much higher levels. IMO who sells now has only himself to blame.

'confessions of a true believer' (whether you consider this post to be dogma or doxa, is up to you, my point is made.)



The WAWH
 

TJBELL

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Press Release Source: CytoGenix


CORRECTING and REPLACING Dutton Associates Announces Investment Opinion: CytoGenix Rating Maintained and Price Target Raised By Dutton Associates
Wednesday February 1, 1:16 pm ET


EL DORADO HILLS, Calif.--(BUSINESS WIRE)--Feb. 1, 2006--In the first graph, exchange and ticker symbol should read OTCBB:CYGX
The corrected release reads:

DUTTON ASSOCIATES ANNOUNCES INVESTMENT OPINION: CYTOGENIX RATING MAINTAINED AND PRICE TARGET RAISED BY DUTTON ASSOCIATES

ADVERTISEMENT


Dutton Associates continues its coverage of CytoGenix (OTCBB:CYGX - News), maintaining its Speculative Buy rating and increasing its target price to $1.40. The 8-page report by Dutton senior analyst William R. Prather, R.Ph., M.D., is available at www.jmdutton.com, as well as from First Call, Bloomberg, Zacks, Reuters, Knobias and other leading financial portals.

CytoGenix, Inc. recently exceeded our price target of $0.90 per share and has appreciated approximately 80% since our new analytical coverage was initiated in April 2005. Despite this increase in valuation, we are reiterating our rating of Speculative Buy on the common stock of CytoGenix because we believe the Company is steadily making progress in developing their cell-free DNA plasmid manufacturing business. They are also validating that the resultant synthetic DNA product from this process, termed synDNA(TM), can be successful and possibly superior in manufacturing DNA vaccines and other therapeutics. CytoGenix is now developing a "Rapid Response Vaccine Development Program" using their synDNA(TM) to target pathogens such as the H5N1 avian flu, smallpox and other infectious diseases. Additionally, the Company has recently announced a collaboration with the Fast Trak BioDefense Group of GE Healthcare, a unit of General Electric Company (NYSE: GE $32.93), with what we believe is the first of several collaborations. We are also revising our price target from $0.90 to $1.40 based on the comparative analysis of other companies participating in this industry and our belief that CytoGenix's patent pending synDNA(TM) represents enormous revenue potential.

About Dutton Associates

Dutton Associates is one of the largest independent investment research firms in the U.S. Its 27 senior analysts are primarily CFAs and have expertise in many industries. Dutton Associates provides continuing analyst coverage of over 120 enrolled companies, and its research, estimates and ratings are carried in all the major databases serving institutions and online investors.

The cost of enrollment in our one-year continuing research program is US $33,000 prepaid before commencement of our research activities. We received $47,000 from the Company for 8 reports and requisite Research Notes commencing 7/17/2002, and do not accept payment of our fees in company stock. Our principals and analysts are prohibited from owning or trading in securities of covered companies. The views expressed in this research report accurately reflect the analyst's personal views about the subject securities or issuer. Neither the analyst's compensation nor the compensation received by us is in any way relate to the specific ratings or views contained in this research report or note. Please read full disclosures and analyst background at www.jmdutton.com before investing.



Contact:
Dutton Associates
John M. Dutton, 916-941-8119

--------------------------------------------------------------------------------
Source: CytoGenix
 

Captain Crunch

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I know you can never go wrong by selling a stock and making a profit, but I think with the lastest NR announcing an agreement with GE Healthcare, there is a tremendous amount of upside potential here. I don't think GE would associate with another company unless they had a pretty good idea that what they (CYGX) had worked. Just my opinion, but I think the next few months are going to pretty exciting for this stock, especially since the price seems to be holding steady after the nice run last week. If they start selling their synthetic DNA and generating revenue, we should see a nice rise from these levels.
 

Chadman

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I am a very happy man this week. Profits are sensible, yes, but there is a lot more coming down the road after signing that first revenue-producing contract. Another good start this AM, and no backtracing. Nice.

I have to think that if and when this stock climbs into the $3 range, it will be a prime takeover candidate by big pharma. Too much value here, and now it is coming to light.
 

JMoney

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Feb 14, 2006
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i think im gonna jump in on this. I like the research ive read and it looks pretty promising. Monday morning ill be on board.
 

Captain Crunch

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Chadman said:
I have to think that if and when this stock climbs into the $3 range, it will be a prime takeover candidate by big pharma. Too much value here, and now it is coming to light.

I wish you and Specul8 (IHUB) would clam up with this buy out/takeover talk. LOL I plan on retiring from my profits from this stock, and $3 ain't gonna get me there. I'm betting/hoping they drop a bomb in the near future that will make the price blow right through $3. I finally figured out my cost basis for this the other night, and like you, have no complaints, but I also think there is a whole lot more on the upside with this one.

Good Luck
 
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